96-22195 RESO
Resolution No. 96-22195
A RESOLUTION OF TIlE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING AN INCREASE IN
THE AMOUNT OF THE LOAN POOL TO $600,000 TO PROVIDE
INTEREST-FREE LOANS OF UP TO $3,000 TO EMPLOYEES TO
PURCHASE PERSONAL COMPUTERS
WHEREAS, on April 19, 1996 the Mayor and City Commission authorized the
implementation of the Employees Computer Purchase Plan (Plan); and
WHEREAS. the Plan provides for interest-free loans up-to $3,000 to eligible employees for
the purpose of purchasing personal computers with repayment through payroll deductions over three
years; and
WHEREAS, the reception and response by employees was overwhelmingly positive, as
evidenced by the number of applications submitted; and
WHEREAS, 115 applications, totaling $322,539.11, have already been processed and over
89 applications remain to be processed; and
WHEREAS, it is the Administration's recommendation to increase the loan pool amount to
$600,000, so as to be able to process all eligible applications; and
WHEREAS, funding for the Plan would be from the Communications Fund Retained
Earnings; and
WHEREAS, On November 12, 1996, the Capital Improvements/Finance Committee
unanimously supported the recommendation and voted to forward the matter to the Mayor and City
Commission for approval.
NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the City Manager is
hereby authorized to increase the loan pool amount to $600,000 for the Employee Computer
Purchase Plan.
PASSED and ADOPTED. this 20lh day of November 1996.
ATTEST:
MoW p~
City Clerk
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LEGAL DEPT.
By 1II1/V/pJk
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CITY OF
MIAIVlI
BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
Commission Memorandum No. ~ q 2 - ~ L..
TO:
Mayor Seymour Gelber and
Members of the City Commission
DATE: November 20, 1996
FROM: Jose Garcia-Pedrosa
City Manager
SUBJECT: A RESOLUTION A HORIZING AN INCREASE IN THE AMOUNT OF THE LOAN POOL
TO $600,000 TO P OVIDE INTEREST-FREE LOANS OF UP TO $3,000 TO EMPLOYEES
FOR THE PURPOSE OF PURCHASING PERSONAL COMPUTERS
ADMINISTRATION RECOMMENDATION
Approve the Resolution.
BACKGROUND
On April 19, 1996, the City Commission approved the creation of the Employee Computer
Purchase Plan which provides for interest-free loans up to $3,000 to eligible employees for the
purpose of purchasing a personal computer. Funding is provided through a revolving loan pool
from Communications Fund Retained Earnings; payment from employees is through payroll
deduction.
A two-day Computer Fair was organized and presented by Laura Keryluk and Oscar Santiesteban
of the Computers and Communications DepaI1ment at the Garden Center on July 25 and 26.
Computer vendors displayed their products and continuous seminars on "How to Buy a Personal
Computer" were scheduled for all interested employees.
To be eligible to participate in the Fair, vendors had to agree to the City's requirements~ among
these were: a guarantee that sale prices to employees were the lowest for a period of 30-days
after the sale and the ability to provide local warranty service. Two vendors, CompUSA and
Laptop City, and one training organization, Executrain, agreed to all the conditions and
participated in the Fair. Further. employees were advised that they were not required to purchase
computers from these vendors but were able to purchase from any authorized vendor of their
choice.
Agenda Item~
l\-20-'l~
Date
Employee Computer Loan Program
November 20. 1966
Page 2
ANAL YSIS
During the 2-day period, 200 employees attended seminars and over 400 employees visited with
vendors. At the cut -off time for submitting loan application, the City received 216 applications,
of which 11 were withdrawn or determined to be ineligible. During July and August, 115
applications approved. Check totaling $322,539,11 were issued in the names of the employees
and vendors. Payroll deductions were initiated and repayment is being made at the rate of
$107,513 per year or $4,135 per payperiod. Assuming an interest rate of 5.0%, the cost to the
City for this program, in terms oflost interest earnings, is $25,465 or $8,488 per year. There are
89 applications with a loan amount of$250,554.66 still to be processed. Priority for processing
loan applications were given to employees that are required to use a personal computer as part of
their job; other were processed according to seniority.
CONCLUSION
The results of the Computer Fair and loan applications received indicate that the program
received overwhelmingly positive responses by the employees. This is further substantiated by the
number of letters expressing appreciation and gratitude to the City for implementing the program
that were received from employees.
It is the Administration's recommendation that the loan pool amount be increased to $600,000 to
allow processing of all eligible applications received, including applications not yet processed. As
specified in the loan documents, repayment is made by payroll deductions during the next three
years.
A status report and recommendation for increasing the loan pool amount was presented to the
Capital Improvements/Finance Committee at their November 12, 1996 meeting. The Committee
voted unanimously to recommend the increase in the amount of the loan pool adoption by the City
Commission.
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